[경제]Hyundai Heavy-Daewoo Shipbuilding, merger likely to fail… Concerns about Daewoo’s financial difficulties


Korea Shipbuilding & Marine Engineering, a subsidiary of Hyundai Heavy Industries, is paying attention to the prospect that the European Union and the EU will not approve the acquisition of Daewoo Shipbuilding & Marine Engineering (DSME).

There are concerns about the weakening of the competitiveness of the entire shipbuilding industry. In particular, there is a possibility that Daewoo Shipbuilding & Marine Engineering will face difficulties in financing in the short term.

Reporter Park Hong-gu on the sidewalk.


When the privatization contract was signed with Daewoo Shipbuilding in March 2019, I thought there would be no major difficulties in the merger.

However, as foreign media reported that the European Union and the EU would not allow the merger between the two companies, the possibility of failure increased.

If the two companies merge, it seems that the market share of LNG carriers, which has recently been increasing in demand, will reach 60%, and there is a risk of monopoly.

[이은창 / 산업연구원 박사 : 최근 5년간 시장 점유율을 건조량 기준으로 분석해보면 한국조선해양과 대우조선해양을 합치면 60% 정도가 됩니다. 이 부분이 EU에서는 시장 점유율이 높다고 판단하는 게 아닌가 (생각합니다.)]

If the merger fails, the plan to achieve economies of scale by reducing competition among shipbuilders will fail, and the privatization of Daewoo Shipbuilding & Marine Engineering will be passed on to the next government.

In this process, there is a possibility that Daewoo Shipbuilding & Marine Engineering will face financial difficulties.

This is because, with the debt-to-equity ratio already rising to 300% in the third quarter of last year, it may not be enough to purchase raw materials and other funds to build a ship with only a down payment for orders.

[최진명 / NH투자증권 책임연구원 : 일단은 단기적으로 고충이 있을 것 같습니다. 양질의 수주를 확보했다 하더라도 이를 제작하는 과정에서는 조선업체들의 대규모 자금 집행이 불가피합니다. 수개월 정도는 경영진의 고충이 있지 않을까 생각합니다.]

It is known that the results of the merger review will be announced on the 20th.

However, there are also observations that the EU may grant conditional approval on the premise of partial sale of the LNG carrier business or price freeze.

Daewoo Shipbuilding & Marine Engineering became an object of public management after the Daewoo Group was disbanded due to the IMF in 1998.

Securing the order volume despite difficult circumstances is actually holding back the merger.

This is YTN Park Hong-goo.

YTN Park Hong-gu (

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